Cryptocurrency Q&A
Why is the total supply of bitcoin limited to 21 million?
Why is the total supply of bitcoin limited to 21 million?
CryptoEmpireGuard
Mon Jul 15 2024
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6 answers
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In the realm of cryptocurrency and finance, a question often arises regarding the fundamental nature of Bitcoin - specifically, why is the total supply of Bitcoin limited to 21 million? This limitation seems to be a defining characteristic of the digital currency, but what are the reasons behind this design choice? Does it have anything to do with the scarcity principle in economics? Or is it a technical necessity due to the nature of the blockchain technology? Understanding the rationale behind this limitation is crucial for grasping the fundamental value proposition of Bitcoin and its potential impact on the future of finance.
6 answers
Dario
Tue Jul 16 2024
By capping the supply, Nakamoto intended to mimic the economic properties of physical commodities like gold, which are inherently scarce and thus maintain their value over time.
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Maria
Tue Jul 16 2024
Among the various concerns surrounding Bitcoin (BTC), a prominent one revolves around its limited total supply, which is capped at approximately 21 million.
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Daniele
Tue Jul 16 2024
This limited supply has also contributed to Bitcoin's popularity as a store of value, as investors believe that its scarcity will drive up its price in the long run.
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SolitudeNebula
Tue Jul 16 2024
The rationale behind this limitation dates back to the inception of the cryptocurrency, when its pseudonymous creator, Satoshi Nakamoto, established this fundamental principle.
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Martino
Tue Jul 16 2024
BTCC, a UK-based cryptocurrency exchange, offers a wide range of services that cater to the needs of both retail and institutional investors. Among its offerings are spot trading, futures contracts, and wallet solutions.
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